The Hong Kong Monetary Authority (HKMA) has officially published its “Fintech 2025” strategy presenting its plans for adopting digital finance by 2025.
The plan also mentions CBDCs, as HKMA pointed out that the efforts for researching CBDCs will be increased so that Hong Kong will be ready to offer them to its citizens.
“Fintech is, without doubt, a key growth engine for the financial industry in the post-pandemic era, and now is the right time to double down on our efforts to grasp the opportunities. [Fintech 2025] sets out our vision in this regard. I urge all stakeholders to join forces with the HKMA. Together, we can take our city’s fintech ecosystem to new heights,” declared Eddie Yue, Chief Executive at the Hong Kong Monetary Authority.
HKMA confirmed that it works with the People’s Bank of China and that some tech tests for a digital fiat that is based on the Chinese Yuan, named e-CNY, will be held in Hong Kong.
It was also confirmed that there are plans to work with the Bank for International Settlement:
“The HKMA will strengthen its research work to increase Hong Kong’s readiness in issuing CBDCs at both wholesale and retail levels. In addition to the continued effort on wholesale CBDCs, the HKMA has been working with the Bank for International Settlements (BIS) Innovation Hub Hong Kong Centre to research retail CBDCs and will begin a study on e-HKD to understand its use cases, benefits, and related risks,” stated the agency in a press release.
Meanwhile, Hong Kong continues to be rather suspicious when it comes to crypto with proposals to restrict crypto trading for investors worth more than $1 million, plus tighter regulations and frameworks.